LAW NO.(26) FOR THE YEAR 1994

LAW FOR ORGANIZING THE COISCMERCIAL AGENCIES

This Law aims at organizing activities of the Commercial Agency which an Agent exercises in Iraq in favor of a Natural or a Juristic Person from outside Iraq, and organizing dealings of Departments of the State, the Socialist, the Mixed & the Private Sectors, the Federations, the Popular and Vocational Organizations with the Foreign Natural and Juristic Persons in a mode that achieves aims of the national development, and avoids the exploitation and ensures interest of the national economy.

Aims of this Law shall be achieved by the following means :-

1st : Obtaining a License to exercise activities of the Agency.

2nd : Registering the Commercial Agencies in a Special Register in accordance with provisions of this Law.

3rd: Supervising activity of the Commercial Agents.

By the following expressions, it is meant the meanings shown against each for the purpose of this Law.

1st : The Commercial Agency - every commercial work undertaken in Iraq by a person in the capacity of an Agent for a Natural or a Juristic Person from outside Iraq, whether it was a Commercial Agency, or an Agency by Commission, or a Commercial Representation, and any other Commercial Agency -prescribed in the Laws pertinent to the Trade, Companies and Transportation.

2nd : The Commercial Agent - The Natural or the Juristic Person who undertakes any of the Commercial Agency works Described under item (1st) of this Section.

3rd : The Registrar - Registrar of the Companies

4th: .The License - The Certificate issued by the Registrar for the Commercial Agent.

Section - 4

It is a condition in granting the License for the Commercial Agent that he should be :-

1st : Enjoying with the Iraqi Nationality and. resident in Iraq. However, if it is a Company, it is a condition that it should be an Iraqi Company and all its stocks and shares owned by Iraqis.

2nd: Having full competence and has attained twenty-five years of his age.

3rd: Not convicted with a derogatory crime,

4th: Known for his straight forwardness and good conduct under a confirmation from a competent Authority.

5th: Has a Commercial place in Iraq for exercising his work.

6th: Subscribed to one of the Chambers of Commerce in Iraq.

7th: Mas a Register for the Commercial Agencies and according to requirements of the Commercial work.

1st: those who have the conditions prescribed under Section (4) of this Law may submit an application to the Registrar for obtaining a License to exercise functions of the Commercial Agency, together with the documents which confirm prevalence of the conditions prescribed under the said Section.

2nd : The Registrar should consider the application within a period of thirty days from date of its submission, and in case of rejection, the applicant may object with Minister of Trade within thirty days from the following day of date of his being notified about rejection of the application. Ruling of the Minister in this respect shall be final.

3rd : Upon acceptance of the application, the Registrar should issue the Licence which must contain its Serial Number, its date, name of the Commercial Agent, his address, his photograph or photograph of the Managing Director in case it is a Company.

1st : The Commercial Agent should submit an application to renew his License within a period of sixty days from beginning of each year, whatever date of granting the License or its previous renewal may be.

2nd: If he did not submit the renewal application within the period prescribed under item (1st) of this Section, hence, the Registrar should impose a fine amounting to fifty Dinars per each day delay and for a period not exceeding sixty days.

3rd: If the Agent defaulted in renewing the License, from the period set out under item (2nd) of this Section, hence, the Registrar should cancel the License, and the Commercial Agent may object with the Minister within thirty days from the following day of date of his being notified accordingly, and ruling of the Minister in this respect shall be final.

4th: It is not permissible to grant a License to the Agent unless after payment of the duties and the fines imposed on him.

5th When canceling License of the Agent, and he does not obtain a new License within (180) days from date of its cancellation, this shall entail, by force of Law, cancellation of all his agencies registered according to provisions of this Law, without touching upon the obligations arising upon him before cancellation of the License.

The Registrar may decide reckoning any commercial activity undertaken in Iraq by a Natural or a Juristic Person according to the legal evidences a Commercial Agency subject to provisions of this Law, and those concerned may object with the Minister within thirty days from date of being notified, and ruling of the Minister in this respect shall be final.

The Registrar should cancel License of the Agent when losing any of the requisite conditions for granting it, and the Agent may object with the Minister, within thirty days from date of being notified, and ruling of the Minister shall be final.

The Agent should submit an application to the Registrar to

register all his Commercial Agencies from the Natural Persons, the foreign Companies and Parties, after completing their endorsements according to the Law.

1st : The Agent should maintain a special Book, to be devoid from any crossing out, or erasure or filling or blank which is not needed by rules of Commercial Book-keeping, provided that he should present it to the Registrar, or whoever he authorizes, when opening it in order to fix numbers of its pages and to stamp each page thereof at the end of each year for endorsing on number of the pages used before end of the year, and to earmark its closure on the last page thereof.

2nd: The Agent should write down in the special Book sums of the commission realized for him, showing amount being remitted there from to Iraq, through the licensed banks, and its percentage to the sums of the deals concluded, and the commercial processes done for account of his principal, together with mentioning names of all those concerned with their full addresses.

3rd: The Agent should submit to the Registrar a Statement in duplicate within sixty days from beginning of the year, about the commercial activities he has undertaken during the previous year, provided it contains total sums realized for him from exercising the Commercial Agency works, in detail, and amount he has virtually received therefrom, together with mentioning the parties to whom those amounts were remitted, and the banking documents and certifications confirming that. The Registrar may accept the Statement after lapse of the said period within ninety days from date of its expiry - if the delay was due to a legitimate excuse.

4th : The Agent may import goods requirements, machines, productive equipment and their spare parts, and the raw materials for production requirements, and the basic foodstuffs, with all sums of the commissions realized. for him or with a portion thereof, and to return to Iraq the remaining currencies.

It is allowed for the Agent to make dealings in all kinds of commodities without 'Goods Classification Limitations', in compliance with the Instructions issued in this respect.

The Registrar has authority of control and supervision over activities of the Agent, and he may send his representative to inspect his place and to check his Books.

It is permissible to grant officials of the Registrar, whose designations are not less than "Supervisor" who hold a University Degree in the Law, authority of Investigator, through nomination by the Minister, and a ruling by the Minister of Justice, to investigate in the crimes prescribed in this Law, under control of a competent Investigation Judge. And the Registrar may request from the Investigation Court to carry out the investigation in any of these crimes.

Every one who undertook any of the Commercial Agency functions before obtaining the License, or did not register all his agencies shall be penalized with imprisonment for a period not less than one year. And if the violator was a Juristic Person, hence, whoever represents it legally shall be penalized with the same punishment, together with observation of provisions of Section (80) of the Penal Code No.(111) of 1969.

Every Civil Servant who undertook intentionally to do Commercial Agency activities in order to conclude a contract with Departments of the State and the Socialist Sector shall be penalized with life or temporary imprisonment.

1st : There shall be penalized with a fine not less than (1000) one thousand Dinars and not exceeding over (10 000) ten thousand Dinars every Agent:-

a) who did not maintain a Book written therein amount of the commissions realized in accordance with provisions of item (2nd) of Section (10) of this Law.

b) who did not submit a Statement within the period defined under item (3rd) of Section (10) of this Law.

c) who did not submit the information pertaining to his imports from sums of the commissions realized for him, together with the Statement of the Commissions, prescribed under item (3rd) of Section (10) of this Law.

2nd : And the -punishment shall be imprisonment in ease of recurrence when committing any of the acts prescribed under item (1st) of this Section.

The Agent licensed before validity of this Law should qualify his status according to its provisions within (180) days from date of its validity, otherwise his License shall be deemed cancelled.

The Minister of Trade may exclude any of the State and the Socialist Sector Departments, when dealing in the capacity of a Commercial Agent, from provisions of this Law by a statement to be published in the Bulletin of the Companies Registration Department.

1st: the following duties shall be levied from the Agent:-

a) (750) seven hundred and fifty Dinars for issuing the License.

b) (250) two hundred and fifty Dinars for renewing the Licence.

c) (100) one hundred Dinars for registering the Commercial Agency.

2nd: The Council of Ministers may amend amount of the duties and the fines prescribed in this Law whenever the need arises therefore.

1st : The Law Ho.(11) for the year 1983 for Organizing the Commercial Agency and Mediation shall be repealed.

2nd : The Commercial Mediation in respect of the Natural and the Juristic Persons from outside Iraq shall be forbidden and until further notice.

The Minister of Trade may issue Instructions to facilitate implementation of provisions of this Law.

This Law shall be implemented from date of its publication in the Official Gazette.

SADDAM HUSSEIN

Chairman

REVOLUTIONARY COMMAND COUNCIL

For the purpose of organizing functions of the Commercial Agency and activating activity-of the Commercial Agents, and to open new horizons before them to exercise their activities, and in order to lift the restrictions which were stated in the Law No.(11) of 1983 for the Commercial Agency & Mediation, and for the purpose of excluding activities of the Commercial Mediation, and confining the Law to functions of the Commercial Agency - THIS LAW WAS PROMULGATED.